Household spending has fallen for the first time in five months, according to figures released by the Australian Bureau of Statistics (ABS).
Spending in March fell by 0.3% in March, following a 0.3% and 0.5% growth in February and January, respectively.
ABS head of business statistics Robert Ewing said that Queensland experienced the sharpest drop in spending following Cyclone Alfred.
“Queensland saw a 1.3% fall in spending, as ex-tropical cyclone Alfred impacted parts of the state,” Ewing said.
“Transport and Health spending were especially affected, falling 3.9% and 3.3% respectively.
“Food spending in Queensland rose 2.9% as households stockpiled before the cyclone made landfall.”
Other states and territories that had a fall in spending were NSW (-0.3%), South Australia (-0.3%) and the Northern Territory (-0.2%).
All other states and territories experienced a growth in spending, with the Australian Capital Territory experiencing the highest growth of 0.6%.
Household spending was up 3.5% from the same time last year, with the biggest rise in Recreation and Culture (5.4%) and Food (5.7%).
Services and Goods spending grew 5.1% and 2.3% respectively from March 2024.
This is the first month where the spending indicator includes adjusted volumes that factor in inflation.
Ewing said household spending volumes were relatively unchanged at 0.0% in the March quarter compared to the previous quarter.
"This comes after volume growth of 1.6% in the December quarter 2024 and a fall of 0.3% in the September quarter 2024,” he said.
Miscellaneous goods and services, recreation and culture and food spending all increased from the previous quarter, while alcoholic beverages and tobacco spending decreased by 5.9%.
